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Hawaii presentation: The economics of black soldier fly production

How much could you expect to save by implementing a black soldier fly operation on your farm? How valuable is a ton of black soldier fly larvae? These questions and many more are discussed in the presentation.

Wallace Campbell

on 14 October 2013

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Transcript of Hawaii presentation: The economics of black soldier fly production

Black soldier fly economics: What factors determine cost effectiveness?
Wallace Campbell
Reduced feeding costs
Larvae can be fed directly (live) to
swine, and
High quality soil amendment
The composting process sufficiently reduces nutrient levels in the manure so that the residual can be directly applied as a soil amendment in larger quantities than fresh manure.
Small-scale production system
Outputs are used on-farm
Revenue is derived from reducing costs
Does not require larvae refining equipment
With black soldier fly composting, one dry ton of organic waste can be converted into...
Between 160 and 400 pounds of dry larvae
$48 - $120 as a substitute for grain-based protein feeds
$112 - $288 as a substitute for fish meal
Between 1200 - 1600 pounds of residual compost / fertilizer
Production potential
Benefits of refinement
Increases the protein content from 42% to 62%
Refined larvae can be used in larger quantities as a feed substitute
Control over the final nutrient content of the feed
Dried pellets are more storable than fresh larvae
The lipids can be sold or processed into biodiesel
Large-scale production system
Outputs are used on-site, not sold on the open market
Revenue is derived from reducing costs
Larvae are refined into multiple outputs
It depends upon...
Quantity and type of organic waste,
Does black soldier fly composting make economic sense?
Waste management expenses before and after implementing a composting system,
Cost of animal feed,
The structure of the farm: concentrated or dispersed,
The weather,
I'll stop there.
Substantial startup / capital costs
Oil expeller press
Biodiesel production equipment
Refining facility
Requires skilled labor
Only viable for large concentrated animal farms or large-scale food production operations
Larvae is produced at the site of waste producers
The refiner collects larvae and provides a waste management service
The refiner sells the outputs on the open market or uses the outputs internally
Minimal monetary investment in compost bin construction or purchase
Labor time required to "feed" and monitor the compost bin
Reduction in waste management expenses.
For farmers:
Sale of larvae to the refiner: To induce the producer to sell larvae, the price that the refiner offers must be greater than the value of the unrefined larvae
Distributed larvae production
Costs for the refiner
Building facility
Refining equipment:
Biodiesel equipment
Purchase of larvae?
Sale of outputs:
Refined animal feed - high protein, low fat
Compost and fertilizer
Payment for the waste management service?
Transporting manure
Monitoring the compost bin
Attending workshops
Material cost of the compost bin
Labor and materials
Two economic benefits:
Reduction in waste management expenses.
The outputs from the composting process are worth more than the input (fresh waste).
Factors that would increase the economic attractiveness of black soldier fly composting:
An increase in the prices of outputs: feed, fuel, and fertilizer.
An increase in waste disposal costs.

Total value of $187 - $347, depending upon larvae conversion rates and the end use of the feed.

Which is much more than a ton of waste!
Keys to economic success

Minimize the amount of labor required to feed the compost bin.
Maximize the conversion rate from waste to larvae.
For farmers:
Full transcript